Lean Drilling™ Case Studies
Petrofac - 40% Reduction in Drilling Time
Planned performance was based on past performance and overall regional performance. An integrated operator / supplier team was formed with assigned deliverables through the planning phase. A target time was set at under half the past performance through a team Drill the Well On Paper (DWOP) event. Results showed an impressive 40% reduction in drilling and completion time for the wells which faced challenges from soft formations that are difficult to build inclination to intermittent depleted sands which create a complex pore and frac gradient regime with a narrow mud weight window. Furthermore, precautions were taken to minimize formation damage in the producing interval.
Addax Achieves 77% Drop in Project NPT
Performance was poor as non productive time in the operation was over 30%. John de Wardt defined a project delivery process and got it to be accepted by all in the department. This process requires the application of a number of steps at all stages of the planning and execution processes with appropriates gates that check and sanction each step before the next stage is carried out. The application of this process had a dramatic impact on performance as non productive time dropped to about 11% the following year. By the second year non productive time was about 7% - a total reduction of non-productive time of 23%.
BP Mad Dog's first Deep Water Development well (4,600 ft water depth) in its pre - SPAR drilling phase achieved a planned TD of 21,330' using Diamond's Ocean Confidence 5th generation semi submersible rig in 21 days per 10,000 ft. The team exceeded the best of best performance in all well segments, except one, in the deepwater Gulf of Mexico. This S shaped well drilled through a thick salt section to faulting and a pressure regression below. BP utilized DE WARDT AND COMPANY to take them through the key process steps to achieve the organization alignment, focus on performance, plan enhancement and other attributes they were looking for.
The Lean Drilling program was applied to a 4400 meters development well with an 1100 meters horizontal section, which was planned to include an intelligent completion, in the Norwegian sector of the N Sea. The well was drilled in 25.4 days with an overall drilling performance of 171 meters / day compared to a historic average of 80 meters / day, using a type 2 semi-submersible unit in some 350 meters of water (left plot). The completion activity was performed in 12.9 days compared to a historic completion time of 24 days (right plot). Statoil stated in their magazine "Well Informed" that the result was even better than the Technical Limit Curve for this well. This result realized capital cost savings of US$ 7.5 million and additional value from earlier production of oil.
One of the fastest offshore gas developments.
Sangu achieved first gas only seventeen months from the Field Development approval and just over two years from the discovery by Cairn. Cairn and its co-venturers were able to remain on schedule with the field development notwithstanding the many problems caused by the difficult operating conditions that are a feature of the Bay of Bengal. This is the first project to develop and supply gas from the Bay of Bengal into the domestic market of Bangladesh. Cairn and its co-venturer Halliburton jointly undertook this project that included sub-surface modeling together with the design and construction of the wells, platform, pipeline and onshore plant. DE WARDT AND COMPANY organized this multi-discipline, multi-location team and implemented management processes that aligned the team to very aggressive goals through their Lean Hydrocarbon Development program.
Lean Drilling has been applied to many projects offshore Norway. The plot on the right shows the results from three projects with different challenges benchmarked against other N Sea results. These wells were drilled with different operators, different drilling contractors (and rigs) and to a large degree different service companies. These results show the ability of the Lean Drilling program to consistently differentiate the performance of our clients against their peers.
When depletion strategies for BP Amoco's Valhall field on Norway's continental shelf required the drilling of extended reach drilling (ERD) wells, problems appeared which threatened the project economics. Average trouble costs approached 35% and occasionally exceeded 50%, while some wells failed to reach their objectives. Lean Drilling was applied to a very challenging ERD well. Starting with a slot recovery that historically took 29 days being completed in 18, the well concluded 31 days (30%) ahead of past performance including a 1000m horizontal section. The challenges that were overcome to achieve this performance included active faulting in the over burden section, very tight equivalent circulating density (a narrow band between rock strength and pore pressure), lost circulation, over pressurized shale, proximity of well bores, distorted seismic date with non-homogeneous pressure depletion and flowing chalk in the reservoir.
A semi submersible drilling campaign for multiple operators showed a significant deterioration in performance during the initial three wells. This caused the operator planning the fifth well to seriously reconsider the planning and execution methodology traditionally applied. They selected Lean Drilling as the tool to deliver a step change improvement in performance and reverse the deteriorating trend. The base well plan was 46 days in duration. The project team improved this to a trouble free time of 29 days as they built their detailed plan and focused on high performance. The actual result of 27 days confirmed the success of Lean Drilling in delivering the desired step change (left plot). Beyond this excellent performance, the value delivered by this exploration well in terms of the quality and breadth of data acquired exceeded all past experience.
In July 1999, Saga Petroleum (now Norske Hydro) completed their 4103m remote "Gjallar," wildcat well in 1352m water depth. The well was planned using DE WARDT AND CO's Lean Drilling program and achieved a performance result significantly ahead of other deepwater operators (see plot on left). The results for this project are best described by this quotation from an IADC/SPE paper (#51980) published by Flemming Stene of Hydro (formerly Saga) and Peter Aird of Kingdom Drilling. "To optimize the planning process and make further improvements, Saga engaged John de Wardt to apply his Lean Drilling program. This is a planning method based on giving 'ownership' of the project to all involved parties; in the operator, drilling contractor and service companies, both offshore and onshore. Each party is required to take full responsibility for their input, both in the planning and execution phase, in contrast to the usual approach in which 'ownership' is concentrated mainly on those in charge in the operating company. De Wardt's method also puts great emphasis on risk management and contingency planning. The planning process continued until spud in early June 1999, a duration of 3 months." Significant reduction in non-productive time was achieved in the most challenging section - see diagram on right.
The application of Lean Drilling to the Norwegian operations of bp, TotalFinaElf, Statoil and Saga (now Norske Hydro) has differentiated the drilling performance of these operators when compared to their internal and external peers. With daily drilling costs in this region ranging from $150,000 to $350,000, the savings achieved are worth many millions of dollars. The plot on the left presented to the AADC in Houston on November 13, 2001 shows the step change achieved by bp Norway in comparison to their regional peers. The plot on the right shows how the clients of DE WARDT AND COMPANY achieved the best performance on a comparison of depth versus time for all Norwegian deep-water exploration wells.
A long drilling history with a traditional organization achieved a plateau drilling time of 13 days for these 2,500m wells with 50 degrees of inclination. A Lean Drilling reorganization lead to a step change in performance, which quickly achieved 7 days for the same objective. Simultaneously the costs of drilling fluid and bits were reduced significantly helping to reduce the overall cost of these wells. The resulting performance (right plot) beats the typically stated technical limit of 2 days per 1000 ft for these wells.
John’s emphasis on rigorous planning has resulted in tangible and measurable results in the area of drilling and completing wells. A true step-change.
...substantial improvement in product delivery and resultant reductions of inventory. The catalyst for these new processes was the Strategic Planning workshop lead by John de Wardt.
We have seen significant improvements in results and have adopted the principles in our planning and operations efforts.
His recent corporate strategy development work resulted in a set of strategic initiatives that are already beginning to deliver value only a few months into their implementation.
His insight into the oil and gas industry is invaluable, and his knowledge of best practice in manufacturing has added measurable value to several of our investments.
John de Wardt provided us with a straight forward, hard driving, no nonsense approach to strategic planning that is still helping us define and achieve new business goals.